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Exercise 13-4 Osage Corporation issued 3,700 shares of stock. Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,650.) (a) The stock had a par value of $9 per share and was issued for a total of $58,000. (b) The stock had a stated value of $9 per share and was issued for a total of $58,000. (c) The stock had no par or stated value and was issued for a total of $58,000. (d) The stock had a par value of $9 per share and was issued to attorneys for services during incorporation valued at $58,000. (e) The stock had a par value of $9 per share and was issued for land worth $58,000.
No. Account Titles and Explanation Debit Credit (a) (b) (c) (d) (e)
Expert Answer
Solution
| No. | Account titles | Debit | Credit |
| a | Cash | $58,000 | |
| Common stock (3700×$9) | $33,3000 | ||
| Paid in capital in excess of par-common stock(58000-33300) | $24,700 | ||
| b | Cash | $58,000 | |
| Common stock | $33,300 | ||
| Paid in capital in excess of stated value-common stock | $24,700 | ||
| c | Cash | $58,000 | |
| Common stock | $58,000 | ||
| d | Organization expense | $58,000 | |
| Common stock | $33,300 | ||
| Paid in capital in excess of par-common stock | $24,700 | ||
| e | Land | $58,000 | |
| Common stock | $33,300 | ||
| Paid in capital in excess of par-common stock | $24,700 |
